Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on the higher side and closed above 18800 levels after adding 126 points to its previous closing values.

The broader market performed in line with the benchmark as Mid-cap and Small-cap were up over 0.50% each. The market breadth was skewed in favor of the bull as over 1.5 advances were recorded for every declining share at NSE.

Barring FMCG and Oil & Gas index that settled on a flat to negative note, all the sectoral indices tracked at NSE settled in green. Amongst them, Nifty Financial Services and Realty index were at the top of the tally rose over 1% each followed by Banking space, including Private as well as PSU Banks indices, which rose over 1% each.

Technically, Nifty index is well placed on multiple chart frames and closed near the upper band of the congestion zone i.e. 18500-18900 levels. Going ahead, we reiterate our bullish view on Nifty index till it is holding above 18500 levels on closing basis. Crossover and sustenance above 18900 levels will open the doors for further up move in the near term.

Derivatives Overview & Outlook

Yesterday, Nifty and Banknifty futures added around 9% & 15% of open interest respectively as long buildup whereas Finnifty futures shed around 18% of open interest as short covering.

Nifty and Banknifty futures have rolled 56% & 54% of open interest respectively into next contracts so far.

On options front, put writing was seen at multiple strikes along with some call writing at multiple strikes and maximum positions are at 18700 PE and 18900 CE.

Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 2024 Cr in the cash segment, bought stocks futures worth Rs 1329 Cr and also bought index futures worth Rs 2861 Cr. DIIs were net sellers in the cash segment to the tune of Rs 1991 Cr.

Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18920-19000; Supports 18740-18660

Banknifty – Resistances 44320-44550; Supports 43800-42550

Finnifty – Resistances 19850-19950; Supports 19650-19550

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